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The amount of utility Alec gets from income is governed by the function U = I. He is considering an investment that has a 40%

The amount of utility Alec gets from income is governed by the function U = I. He is considering an investment that has a 40% chance of paying $900 and a 60% chance of paying $90,000.

Alec's risk premium associated with this investment is:

- $54,630.

- $90,000.

- $17,496.

- $36,864.

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